More with Less... US Land Drilling and Completion Efficiencies Continue to Increase
Just when you thought drilling and completion efficiencies were topping out, we are proven wrong... again!
The grit, innovation, and tenacity of the oilfield service suppliers and operators continue to showcase world-class performance while driving drilling and completion efficiencies to new heights that many believed would one day come to an end.
US land operators report drilling their wells in 2.7% fewer days and completing their wells in 3.2% fewer days despite lateral lengths and stage count continuing to creep higher.
This observation of improved drilling and completion efficiency is even more pronounced in the Permian Basin, where operators report drilling their wells in 4.2% fewer days and completing their wells in 7.1% fewer days. Operators are leveraging technologies such as simultaneous hydraulic fracturing, EPRVs, top-fill sand management systems, and other advancements that, in aggregate, allow operators to drill and complete more efficiently.
These efficiencies are allowing the US Land oil & gas industry to “Accomplish More with Less” as observed in the exhibit below, highlighting how US Land oil & gas production remains at high levels while the rig count (and frac crew count) remains at low levels. As Kimberlite recently reported in its 2023 Drilling Services report, the US Land rig count will have to increase to above 700 in 2024 to meet projected drilling plans and the frac crew count will also increase.
It is clear, however, that the US Land oil & gas industry is “setting the standard” for how to produce efficiently and safely to meet the world’s growing demand and reflects the hard-working men and women who make it happen each day, leveraging technology and capitalism along with grit and innovation.
While we may not know today what the next breakthrough will be, you can rest assured that the US land oil & gas industry will play a major role in making that next breakthrough possible.
Kimberlite will continue to track industry trends and technology adoption, including the growing use of dissolvable plugs, simultaneous hydraulic fracturing, use of recycled water, and other technologies. Feel free to reach out to discuss.